Support The Moscow Times!

New MMM Offers 20% Returns

Sergei Mavrodi smiling in a courtroom cage during his fraud trial. Having served his time, he’s open for business. Igor Tabakov

If you are wondering where to invest your Christmas bonus, Sergei Mavrodi, founder of the MMM financial pyramid that collapsed in the 1990s and defrauded millions of people, has a deal for you.

Mavrodi announced a new financial pyramid project on Monday, called MMM-2011.

The new MMM, an acronym in Russian for “we can do a lot,” will yield a monthly return of 20 percent — 30 percent for pensioners and the disabled, Mavrodi promised in a post to his blog.

Mavrodi, who spent more than four years in jail for fraud and tax evasion, admitted to his scandal-ridden past and said that he will not be directly involved in the project.

Different levels of managers will conduct all financial transactions electronically, and all the profit will go to the investors, he said in a video posted on his blog.

“You know my situation,” Mavrodi said in the video, as he leaned back in a chair, surrounded by bare shelves lining the walls. “I am not touching the money, I don’t need anything.”

The original MMM, which stood for the first letters of the last names of its creators, scammed Russians out of millions of dollars.

While serving his jail sentence, Mavrodi told the court that he should be set free to pay back the investors, partially by cashing in his $1.5 million in shares of Gazprom.

Mavrodi blamed the government for the failure of the company and claims the new venture is perfectly legal.

“Everything is clear and transparent,” Mavrodi said in the video. “The system is untouchable.”

Financial ombudsman Pavel Medvedev does not agree.

Medvedev told Ekho Moskvy on Monday that he would do what he could to stop Mavrodi. Medvedev said the Civil Code is very murky when it comes to credit and lending and Mavrodi may try to make the project appear as though it adheres to the law.

“I will try to influence the prosecutor and write a complaint,” Medvedev said.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more